Archive

Ironbridge Global Partners and a Subsidiary to Pay $4.4 Million Settlement over Microcap Finance Practices

Ironridge Global Partners LLC has agreed to pay $4.4 million in disgorgement to settle claims that it incurred violations of the Exchange Act when its subsidiary Ironridge Global IV distributed billions of microcap shares without…
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FINRA Fine Stats 2016 vs. 2017 and Enforcement Trends

Over the course of 2016, FINRA expelled 24 firms from membership and fined offenders for a total of $176 million. The largest fine amounted to $25 million, paid by MetLife Securities over negligent misrepresentations and…
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FINRA Vows to Protect Investors from High-Risk Brokers

In a speech delivered at Georgetown University, FINRA CEO Robert Cook expressed the Regulatory Authority’s intent on helping brokerages identify and supervise brokers with a history of disciplinary action. From now on, FINRA is going…
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SEC Seeks Injunction in Case Against Avalon FA Ltd. Over Illegal Market Manipulation Known as Layering

The SEC recently asked a federal judge to freeze $5.4 million of Avalon FA Ltd.’s funds, on account of its practice of “layering.” A Seychelles investment firm run out of Ukraine, Avalon allegedly engaged in…
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Raiding Cases in the Securities Industry – Navigating Claims, Damages & the Rest

Raiding, hiring groups of brokers from a competitor, happens frequently in the securities industry giving rise to complex disputes and damage claims. Whether your firm is the victim or the accused raiding entity, you will…
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$4.8M in FINRA Fines for 4 Firms on Supervisory Gap & Deutsche Bank $12.5M on Failed Supervision of Internal Comms

Last month, Deutsche Bank Securities Inc., Citigroup Global Markets Inc., JP Morgan Securities LLC and Interactive Brokers LLC agreed to pay a collective $4.8 million to end FINRA´s probe over inadequate risk controls. According to…
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FINRA Disciplinary Proceedings – Inside FINRA’s Complaint and Hearing Process

FINRA’s enforcement program is big business. In 2008, FINRA levied fines totaling $28 million. By 2016, that number jumped to $176 million. In 2008, FINRA ordered restitution payments to investors totaling $6 million. By 2015,…
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Keeping the Record Straight – FINRA Cracks Down on Firms for Failing to Protect Records

Regulatory compliance is often less costly than FINRA’s steep fines. Yet companies continue to face millions of dollars in penalties for not complying with FINRA’s regulations. In this particular time, there is a clear intent…
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FINRA Chief Counsel on Emerging Regulatory Issues and Enforcement Priorities

At a recent event hosted by the American Bar Association’s Securities Litigation Committee, three Chief Counsel from the Financial Industry Regulatory Authority’s Enforcement division discussed the agency’s current priorities. Chief Counsel Sue Light, Gina Petrocelli,…
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Cal-based Representative Jim Seol Barred by FINRA – Failure to Disclose $100 Million in EB-5 Investments to Employer

In its quest for investor protection and market integrity, FINRA diligently seeks out firm representatives who are in violation of its strict rules. Recently, the regulatory authority decided to bar California-based Jim Jinkook Seol from…
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